TPP deal reached.

[TOM4CWB]

Trans-Pacific Partnership trade agreement reached, sources say
Trade ministers from 12 Pacific Rim countries conclude comprehensive deal after extended talks
CBC News Posted: Oct 05, 2015 7:57 AM ET Last Updated: Oct 05, 2015 8:58 AM ET
"An agreement has been reached on the Trans-Pacific Partnership trade deal, according to officials familiar with the lengthy negotiations, Reuters reported Monday.

The sweeping pact, which was finalized after marathon negotiating sessions in Atlanta, will cut trade barriers and set common standards for the 12 Pacific Rim countries involved. For a short time over the weekend, it looked as though the deal might have had to be abandoned as some of the trade ministers involved were preparing to head to an upcoming G20 meeting in Turkey.

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Canada's east-west divide stoked by TPP trade deal talks
Conservative Leader Stephen Harper, who is scheduled to campaign in Richmond Hill, Ont., this morning, has delayed his trip to speak to media about the deal in Ottawa.

The deal was initially expected to be concluded by last Friday following two days of final negotiations. The haggling, however, ended up dragging on for three more days that included multiple all-night sessions.

Australia's trade minister Andrew Robb told reporters on Sunday that the deal was delayed by a disagreement between his country and the U.S. over next-generation pharmaceuticals. He said that squabble ended up rehashing some other contentious issues that were thought to have been settled.

While Canada was largely a bystander on the feud over how to regulate next-generation pharmaceuticals, it was locked in a rigorous debate over the traditional industry of dairy and how much imports to allow into Canada. CBC News previously reported that the deal could include a major concession from Canadian negotiators on imports of American dairy products.

In addition to the dairy sector, Canada's closely guarded auto sector could be forced to expose itself to greater competition. While the precise details are still unknown, Harper did say during a campaign debate in September that the auto sector may not "like everything that is in that."

The Tories have reportedly been pushing hard to close the trade deal before the Oct. 19 vote, hoping to use it as a tool on the campaign trail to emphasize their claim as the party most dedicated to strengthening Canada's economy.

Proponents of the pact, which would include 40 per cent of the world's economy, have said the agreement is expected to be a boon for Canada's overall economy. But critics say it could come at a cost to certain sectors such as the auto industry and agriculture."

More to come

With files from The Canadian Press and Reuters

[bucket]

Tom

Thanks for that. It's a good read.

Will be interesting to see how it affects the outcome of the election.

But more details are required for Canadians to judge the merits of the deal.

[TOM4CWB]

This could more our grain markets. Up.

[Oliver88]

Great news for grain, oilseeds and beef exports.

Similar to the CETA, another great trade agreement for agriculture.

Interesting how the CBC and their left wing bias will focus on the inefficient, non-competitive, unionized auto sector down east losing out vs how agriculture will benefit.

[riders2010]

This is an oil deal. It will move grain and livestock down. Take a look at who wants to sell beef here and USA. Any time Stevey the liar king went to china for oil deals within month or so grain to china dropped. The deal is all about selling our oil so to get that something else gets sacrificed. It will be agriculture manufacturing and anything that benefits the east.

I ll bet this makes it easier for china to buy land here farm it and take the grain out directly without paying taxes etc on that value.

[Oliver88]

It will remove tariffs on our grain, oilseeds and beef.

It will be a great deal for Saskatchewan, if it helps our oil and LNG exports that will be great as well.

[bucket]

Not to be negative but before it's good for saskatchewan farmers they gave to be able to move product to the ports effectively.

Trade agreements like this don't fix that bottleneck.

[rook]

If Harper's legacy is CETA and TPP then he did very well. These are agreements that will improve Canada for generations.

[wmoebis]

Where does one find a list of what countries have tariffs and how much, on our grain?

[riders2010]

Tell us which countries had tariffs on our grain and livestock and which countries we had tariffs on their grain and livestock?

[canolacrazy]

can someone explain why all the handwringing over the supply managed sector. they are a small part of total agriculture, most who are going to do well in this deal. they only give up a little market access to gain a lot. when the ndp talk about it, it's almost like they'd throw the rest of the country away to save supply management, which drives up prices on dairy and poultry to consumers. give your head a shake.

[foragefarmer]

Oliver 88

Which countries had tariffs on grains involved with the TPP????

[freewheat]

Canola crazy, it is all about Quebec. Appease. Always.

[Oliver88]

The government of Canada website shows a summary for agriculture.
Canola, barley, wheat, beef all have large tariffs entering Japan and other TPP countries.

http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/tpp-ptp/benefits-avantages/sectors-secteurs/01-AgriSector.aspx?lang=eng

Opening markets for agricultural and agri-food products
The Trans-Pacific Partnership is the most comprehensive trade agreement in the world. The TPP will help deepen Canada’s trade ties in the dynamic and fast-growing Asia-Pacific region while strengthening our existing economic partnerships with our partners in the NAFTA and across the Americas. It currently comprises 12 countries (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam), representing a combined market of nearly 800 million people and a gross domestic product (GDP) of $28.5 trillion. With the TPP, Canada has now concluded free trade agreements with 51 nations, ensuring Canadian businesses have access to over 60 percent of the world’s economy. The TPP and trade agreements with the European Union and South Korea make Canada the only G-7 nation with free trade access to the United States and Americas, Europe, and the Asia-Pacific.

In 2014, Canada’s agriculture and agri-food sector employed close to 2.3 million people and accounted for close to 6.6 percent of Canada’s GDP. Canada is the fifth-largest exporter of agricultural and agri-food products globally.

More than 246,000 Canadians employed in the sector work in the processing end of the industry, turning raw ingredients into processed foods, ready-to-eat meals, beverages, nutritional supplements and a nearly limitless variety of other high-quality products. TPP will open up new markets not only for agricultural commodities. It will also open up new markets for the food processing and beverage industry.

TPP markets
The gains from tariff elimination and improved market access for Canadian agriculture in the TPP are especially significant in the markets of Japan, Malaysia and Vietnam. These are markets where Canada faces high tariffs and no prior preferential access. The average agricultural tariffs that Canada faces in these countries are 17.3 percent in Japan, 17 percent in Vietnam and 10.9 percent in Malaysia.

The TPP Agreement will give Canadian products preferential market access to all TPP countries. It will provide new market access opportunities for Canadian pork, beef, pulses, fruits and vegetables, malt, grains, cereals, animal feeds, maple syrup, wines and spirits, baked goods, processed grain and pulse products, sugar and chocolate confectionery, and processed foods and beverages. It will also ensure that Canadians have a competitive advantage over competitors outside of the TPP, benefitting the entire sector, from producers to processors.

In addition, the TPP provides Canadian producers and processors with new opportunities to expand their sourcing options when exporting to the United States, Mexico, Peru and Chile, with which Canada already has free trade agreements in place. Canada’s participation in the TPP will ensure that Canada remains a supplier of choice with our established NAFTA and FTA partners.

By generating opportunities for Canadian agricultural and agri-food exports, the TPP will protect and create jobs, and enhance economic opportunities and financial security for Canadian businesses, workers and their families in all regions of Canada.

Trade snapshot
From 2012 to 2014, Canada’s agricultural and agri-food exports to TPP countries were worth, on average, $31.2 billion annually. Top exports were canola oil, wheat, live swine, baked goods, beef, and processed potatoes.

Agricultural exports from Canada to TPP countries (2010-2014) (values in millions of Canadian dollars)
*Source : Global Trade Atlas

Text version
TPP Agreement highlights
In Japan, close to 32 percent of tariff lines on agriculture and agri-food products will be duty-free upon entry into force.
A further 9 percent of tariff lines will be provided preferential tariff treatment through permanent quotas and country-specific quotas for Canada. The remaining tariff lines will be provided tariff elimination or reductions over a period of up to 20 years, or reductions of the in-quota or out-of-quota tariff.
Vietnam will eliminate tariffs on close to 31 percent of its tariff lines upon entry into force. A further 67 percent of tariff lines will become duty-free within 15 years, with the remaining being provided preferential treatment through other means (tariff elimination only on in-quota tariff lines).
Malaysia will eliminate tariffs on nearly 92 percent of its tariff lines upon entry into force. A further 7 percent of tariff lines will become duty-free within 15 years, with the remaining being provided preferential treatment through permanent tariff rate quotas.
Australia will eliminate all of its tariffs on agriculture and agri-food products upon entry into force, except for one tariff line which will be eliminated within 4 years.
New Zealand will eliminate tariffs on almost 99% of its agriculture and agri-food tariff lines upon entry into force, with the remaining being eliminated within 5 years.
The TPP Agreement will give Canadian products preferential market access to all TPP countries. It will also ensure that Canadians have a competitive advantage over competitors outside of the TPP, benefitting the entire sector, from producers to processors.
Beef and pork
The TPP Agreement will provide new opportunities for Canadian exports of beef and pork, and will ensure that these products compete on a level playing field with key competitors. The Agreement also provides for a rule of origin for these products that recognises the integrated nature of this industry in the North American economy and will help businesses be able to fully realize the benefits of tariff liberalization.

Trade snapshot - Pork
From 2012 to 2014, Canada exported over $2.6 billion worth of pork and pork products on average per year to TPP markets.

TPP Agreement highlights - Pork
Japan will eliminate the over-gate price tariff of 4.3 percent on fresh/chilled/frozen pork cuts and pork offal within 10 years, and reduce the under-gate price tariff of up to 482 yen/kg to an amount of 50 yen/kg within 10 years.
The over-gate price and below-gate price tariffs will be eliminated within 10 years for preserved and processed pork.
Tariffs of up to 20 percent on pork products, including sausages, in Japan not currently subject to the gate price system will be eliminated within 10 years.
Preferential imports of most pork products into Japan will be covered by 10-year transitional volume-based safeguards;
Tariffs of up to 27 percent in Vietnam on fresh/chilled and frozen pork will be eliminated within nine years.
Tariffs of up to 31 percent on all other pork products, including sausages, in Vietnam will be eliminated within nine years.
Trade snapshot - Beef
From 2012 to 2014, Canada exported over $1.3 billion worth of beef and beef products to TPP markets per year, with 83 percent being exported to the United States, 10 percent to Mexico and 6 percent to Japan.

TPP Agreement highlights - Beef
In Japan, tariffs of 38.5 percent on fresh/chilled and frozen beef, as well as tariffs of 50 percent on certain offal will be reduced to 9 percent within 15 years.
In Japan, tariffs of up to 50 percent on processed beef and most offals will be eliminated within 15 years.
In Vietnam, tariffs of up to 31 percent on fresh/chilled and frozen beef will be eliminated within two years.
In Vietnam, tariffs of up to 34 percent on all other beef products will be eliminated within seven years.
Wheat and barley
The TPP Agreement offers new market access opportunities for Canadian wheat and barley, a mainstay of Canada’s agricultural sector. The TPP will also provide Canadian exporters with a significant advantage vis-à-vis competitors outside of the TPP, such as the European Union, Argentina, and Russia.

Trade snapshot
From 2012 to 2014, Canada’s exports of wheat and barley to the TPP were, on average, $2.8 billion per year.

TPP Agreement highlights - Wheat
In Japan, feed wheat will be duty-free, quota-free upon entry into force.
In Japan, Canada will also have access to a Canada-specific quota for food wheat which starts at 40,000 tonnes and grows to 53,000 tonnes within six years. Mark-ups within this country-specific quota will be reduced by 45 or 50 percent.
In Vietnam, tariffs of up to 5 percent on all wheat will be eliminated upon entry into force.
TPP Agreement highlights – Barley
In Japan, food and feed barley fall under a quota system with mark-ups. Feed barley in Japan will be duty-free, quota-free upon entry into force.
Mark-ups applied to the price of food barley by Japan will be reduced by 45 percentwithin eight years.
Canada will also have access to a TPP-wide quota for food barley which starts at 25,000 tonnes and grows to 65,000 tonnes within eight years.
Canola oil
Trade snapshot
From 2012 to 2014, Canadian exports of canola oil to the TPP countries totaled $1.8 billion annually. Japan is currently one of Canada’s leading markets for exports of canola oil, while Vietnam and Malaysia both represent markets with significant growth potential.

Tariff highlights
In Japan, tariffs on canola oil of up to 13.20 yen/kg will be eliminated within five years.
In Vietnam, tariffs of 5 percent will be eliminated within five years.
Processed food and beverages
Trade snapshot
Transforming agricultural commodities into food and beverages is an important part of Canada’s agricultural and agri-food industry, and a key processing sub-sector. In 2013, the food processing industry contributed approximately $27.7 billion to Canada’s economy.

Canadian processors across the country transform raw ingredients into processed foods, ready-to-eat meals, beverages, nutritional supplements, and other high-quality products that are consumed, sold and enjoyed around the world.

From 2012 to 2014, annual Canadian exports of processed food and non-alcoholic beverages to TPP countries averaged $7.3 billion.

TPP Agreement highlights
Canadian exports of processed food products and non-alcoholic beverages face high tariffs from TPP countries such as Japan and Vietnam.
For example, Vietnamese tariffs for frozen french fries are 24 percent.
The TPP Agreement will eliminate or reduce many of the existing tariffs or create tariff rate quotas on processed foods and non-alcoholic beverages, including maple syrup, baked goods, processed grain and pulse products, and sugar and chocolate confectionery.
Creating new markets for Canadian fruit growers and processors

A family has owned a 25-acre cranberry bog for three generations. The family-run operation primarily sells to the processing market, with a small portion of the crop selling locally as fresh berries. While the majority of product is destined for the U.S. market, as with many industries across the country, cranberry exporters are keen to identify other potential markets to maximize commercial potential–and have been looking to Asia and the Pacific region for opportunities. Under the TPP, Canada’s cranberry industry will benefit from removal of existing tariffs in TPP countries such as Japan, Vietnam, Malaysia, New Zealand and Australia. In Japan, for example, elimination of tariffs of up to 16.8 percent on sweetened dried cranberries could translate into more Canadian exports. Streamlined processes at the border and trade-facilitating rules on non-tariff measures will also help support sales to TPP markets. This family is looking forward to the new opportunities the TPP will bring.

Wines and spirits
The distilled spirits industry has a long history in Canada, and contributes significantly to the nation’s economy. Domestically and internationally, Canada continues to be known for producing Canadian whisky, a distinctive rye-flavoured, high-quality beverage.

For wines, Canada is recognized as a world-leader in the production of icewine. Forty-five per cent of Canada’s wine export revenues come from sales of icewine.

Trade snapshot
On average from 2012-2014, Canadian exports of wines and spirits to the TPP were worth $473.2 million annually.

TPP Agreement highlights
Through tariff elimination, the TPP Agreement will significantly improve market access opportunities for Canada’s wines and spirits sector.

Whisky
In Malaysia, duties of 58 Ringgit/litre will be eliminated within 15 years.
In Vietnam, duties of 55 percent will be eliminated within 12 years.
In Australia, duties of 5 percent will be eliminated upon entry into force.
Wine, Icewine and Sparkling Wine
In Japan, duties of up to 182 yen/litre will be eliminated within seven years.
In Vietnam, duties of up to 59 percent will be eliminated within 11 years.
In Malaysia, duties up to 23 ringgit/litre within 15 years.
In Australia, duties of up to 5 percent will be eliminated immediately upon entry into force.
In New Zealand, duties of up to 5 percent will be eliminated immediately upon entry into force.
Beyond tariffs
Canadian producers and processors of agriculture and agri-food products in all regions of Canada will benefit from provisions that address both tariff and non-tariff barriers, including enhanced regulatory cooperation, provisions to address technical barriers to trade, and streamlined customs administration procedures that will save time and money at the border.

The TPP also contains a strong Sanitary and Phytosanitary (SPS) Chapter, including provisions on regionalization, equivalence, and science and risk analysis, which is important for Canadian agriculture and agri-food exporters. These provisions will help ensure that market access gains are not negatively impacted by unjustified SPS-related restrictions.

The TPP SPS Chapter safeguards the right of each party to take measures necessary to protect human, animal or plant life or health. By doing so, Canada can continue to ensure the safety of our food supply and plant and animal resource base, while facilitating and expanding trade. The Chapter also establishes a mechanism whereby SPS issues can be addressed by experts, resulting in enhanced cooperation and resolution of issues.

Ensuring early and effective cooperation on SPS issues both strengthens the protection of Canadians and helps to avoid unjustified barriers to trade.

The TPP also contains provisions for wine that streamline labelling requirements and help reduce costs for Canadian wine producers. Specifically, the Agreement will protect the definition and traditional production method of authentic icewine (where it is made exclusively from g****s naturally frozen on the vine). This is a significant outcome for Canada given that almost all of Canada’s top icewine markets are members of the TPP.

Protecting and preserving Canada’s supply management system

The Government of Canada announced a series of new programs and initiatives for supply-managed producers and processors to support them throughout the implementation of the Trans-Pacific Partnership (TPP) and the Canada-EU Trade Agreement. Under both agreements, the three pillars of the supply management system will remain protected.

The following programs will be implemented:

The Income Guarantee Program will keep producers whole by providing 100 per cent income protection to producers for a full 10 years from the day TPP comes into force. Income support assistance will continue on a tapered basis for an additional five years, for a total of 15 years. $2.4 billion is available for this program.
The Quota Value Guarantee Program will protect producers against reduction in quota value when the quota is sold following the implementation of TPP. $1.5 billion has been set aside for this demand-driven program, which will be in place for 10 years.
The Government also announced two additional programs:

The $450 million-Processor Modernization Program will provide processors in the supply-managed value chain with support to further advance their competitiveness and growth.
The Market Development Initiative will assist supply-managed groups in promoting and marketing their top-quality products. To support the initiative $15 million in new funding will be added to the AgriMarketing Program.
In addition to the long-term $4.3-billion investment outlined above, the Government will intensify on-going anti-circumvention measures that will enhance our border controls. These measures include requiring certification for spent fowl, preventing importers from circumventing import quotas by adding sauce packets to chicken products, and excluding supply-managed products from the Government of Canada’s Duties Relief Program. Cheese compositional standards, introduced by the Government of Canada in 2008, have been maintained. The Government remains committed to ensuring they are enforced, so the standards we have for Canadian cheese are fully maintained.

The Canadian Dairy Commission and the Farm Products Council of Canada will work with Agriculture and Agri-Food Canada to ensure the Income Guarantee and Quota Value Guarantee programs are delivered to producers in an effective and efficient manner. The Government will continue to work closely with dairy, poultry and egg producers and the entire supply-managed sector to implement these initiatives.

These Cabinet-approved initiatives will support producers and processors throughout the implementation period of TPP and the Canada-EU Trade Agreement.

The TPP will secure new market access opportunities for Canadian dairy, poultry and egg exports. Dairy, poultry and egg producers and processors will benefit over time from increased duty-free access to the United States and all other TPP countries. This will include complete tariff elimination on some specialty cheeses, including several artisanal cheeses, entering the United States.

Despite significant and broad demands from several of our TPP negotiating partners, Canada has offered only limited new access for supply-managed products. This access, which will be granted through quotas phased in over five years, amounts to a small fraction of Canada’s current annual production: 3.25% for dairy (with a significant majority of the additional milk and butter being directed to value-added processing), 2.3% for eggs, 2.1% for chicken, 2% for turkey and 1.5% for broiler hatching eggs.

Finally, Canada has secured provisions on products of modern biotechnology which emphasizes the importance of transparency in each Parties’ science-based approval processes for biotechnology products. The text addresses low-level presence (LLP) in a way that minimizes adverse trade impacts of current regulatory practices. It also includes the establishment of a working group to address issues related to biotechnology. This will benefit Canadian producers and exporters of biotechnology products.

Advantages of the TPP
The TPP Agreement will give Canadian producers, processors and exporters a competitive advantage over agricultural exporters who are not TPP members (such as competitors in the European Union, China, and Thailand, among others) and create a level playing field for Canadian businesses to compete within the TPP.

The TPP Agreement will ensure Canadian businesses’ continued participation in critical North American value chains and generate new opportunities in the dynamic and growing Asia-Pacific region.

Canadian farmers will benefit from the Trans-Pacific Partnership Agreement

Imagine a family farm that has been involved in barley and wheat farming for two generations. They are now looking to diversify and expand their market base. Through the TPP Agreement, this farm will benefit from improved access into dynamic and growing TPP markets. For example, upon entry into force of the Agreement, tariffs will be immediately eliminated on wheat and barley for feeding purposes sold to Japan. The farm will also benefit from rules on sanitary and phytosanitary measures that are science-based, while preserving the safety of food for consumers. The TPP will create new opportunities for this farm, and for agriculture and agri-food workers throughout the country.

[wmoebis]

Harper says tariffs are being reduced or eliminated. Savings will be passed on to consumers.

So if grain has a tariff in export country is removed the price of our grain will not go up, there consumers will get benefit. Or else I bet our grain companies will absorb the benefit. Once again no protection/benefit for our producers.